Arrears Calculation

Dear Mr. Avika Kapoor
I am working as HR Assistant, I want to know the details for the following
Our company is decided to give 8% increment on gross salary with effect from OCT-2009 to MAR-2010.
We revised the Salary accordingly from Feb-2010.
We have to calculate for arrears for 4 months. pleas let me know whether I have to consider the LOP while calculating the arrears for 4 months.
Awaiting for your Reply
regards
Ragunathan
0994434273

Mr.Ragunathan,
u have to consider the attendance of respective months.
Exp: if u paid the December 09 salary for 24 days, this increment is applicable for 24 days only and not for 31 days.
is it clear now?

Hi
It's simple.

On a work sheet in excel:
Eligible Amount as per the increased salary should be calculated called as eligible pay:
first column for the month,
2nd column for the basic
3rd column for DA and Subsequentlyone column each for other allowances.
Gross eligible pay will come.

Do the same thing for the salary drawn for each month in question.And gross pay drawn will come.

Next calculate difference between what was eligible and what amount was drawn, column wise for each component and also for the total pay in seperate columns. These amounts of difference will indicate arrears.

in otherwords,Basic pay eligible -what is drawn for all components of pay the same thing shoule be done finally from the gross eligible salary subtract the gross Salary drawn for every month.

Last step is total the columns and the the total for the difference between gross salary eligible-gross salary drawn will give you the Arrears of pay when the hike in salary is effected with retrospective effect.
But, if any employee avails leave without pay and allowance or avails half pay leave etc the same must be adjusted.

This method will give you item wise arrears, month wise arrears and periodic arrears.
The work must be done meticulously.
Dr Vasudeva Reddy,
Hderabad.

Hi
I am working as HR Assistant, I want to know the details for Arrears calculation in salary how calculate in Excel format in Augest 09 to March 2010

Hi All,
Arrears calculation will not stop at Gross .
We need to to calculate PF, ESI, Superannation based on Salary Incr and the payment has to be made respectively.
Regards,
PK

Yes as said by Kalapoorna, but first how to arrive at the arrears amount. once they are calculated the other usual things are to be adjusted.

good question and quite well answered! upgrade urself or left behind! i am amazed to see how u people reached in such a imp. position of HR??

hi,
Any loss of pay includes all benefits arising out of pay such increments , seniority also ,unless specified otherwise .Hence the increments get postponed accordingly, no arrears can be paid for the period of L O P
Yogesh